Is 'sugar dating' draining your client's savings?

by Sophie Nicholls25 Feb 2014

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Is 'sugar dating' draining your client's savings?

You’ve managed to convince your client not to withdraw from an RRSP to fund a vacation; veered them away from the gimmicky investment of the week promising hefty returns … but what if your client’s latest risk-taking endeavour has them love struck?

The controversial term ‘sugar daddy’ is taking on a whole new meaning when it comes to the world of online dating. Coined ‘sugar dating,’ websites, like SeekingArrangement.com, are the next hit for 20-something college students looking to avoid financial debt, and well-off benefactors seeking their next thrill.

Last year, alone, approximately one-million students worldwide logged on to SeekingArrangement.com in search of wealthy benefactors, with the average college ‘sugar baby’ receiving $3000 per month, according to the website.

Young women – a target demographic – are being wined and dined by wealthy men – also targeted – often leading to longer-term relationships on an emotional, physical and, most certainly, transactional level.

One 23-year-old woman, reported the New York Post earlier this month, began dating a mid-40s lawyer and, just two weeks in, was offered $1,000 every 10 days in exchange for regular company over dinner, drinks and weekend rendez-vous. The young woman collected approximately $20,000 before the relationship ended, reported the Post.

So, what happens if, as an advisor, you suspect similar behaviour from a client, whose accounts, you’ve noticed, are all of a sudden taking a greater hit? (continued.)